At 12:00 (AEDT), the benchmark S&P/ASX200 index was up 67.9 points, or 1.48 per cent, at 4659.5 while the broader All Ordinaries rose 65 points, or 1.41 per cent, to 4662.2.
EL&C Baillieu Stockbroking director Richard Morrow said gold and minerals were the main feature of morning trade.
"The bigger gold stocks are taking centre stage," Mr Morrow said.
Lihir jumped 16 cents, or 5.39 per cent, to $3.13 and Newcrest Mining gained $2.20, or 6.68 per cent, to $35.13.
"And there's money flowing into mid-ranking shares like Sino Gold and St Barbara," Mr Morrow said.
Sino Gold climbed 48 cents, or 7.06 per cent, to $7.28, and St Barbara added two cents, or 6.56 per cent, to 32.5 cents.
The spot price of gold in Sydney was $US1039.10 per fine ounce, up $US17.97 on yesterday's closing price of $US1021.13.
The major miners also showed their might.
Rio Tinto rose $2.13, or 3.69 per cent, to $59.86 following news it and Canada's Ivanhoe Mines will develop a $US3 billion ($3.38 billion) gold and copper project in Mongolia.
BHP Billiton advanced 82 cents, or 2.24 per cent, to $37.47.
BHP says the haulage system at its Olympic Dam mine in South Australia has been damaged in a mechanical failure.
The incident at the uranium, copper, gold and silver mine occurred about 22:30 yesterday
Fortescue Metals has been granted a prospecting permit for an area of New Zealand's South Island bordering the Kahurangi National Park.
FMG Pacific, a subsidiary of the Perth company, was given the green light to search for 23 minerals in the 3568sq km permit area but was most interested in iron ore and coal, The New Zealand Herald reported.
Fortescue Metals jumped 24 cents, or 7.06 per cent, to $3.64.
Mr Morrow said the property sector was strong despite yesterday's cash interest rate rise and today's release of housing data.
Australian housing finance commitments for owner-occupied housing fell 0.6 per cent in August, seasonally adjusted, to 62,718 the Australian Bureau of Statistics said.
"The property area is not showing any fears regarding potentially higher interest rates," he said.
GPT was a winner, up three cents, or 4.76 per cent, to 66 cents.
The big four banks also were stronger.
Commonwealth Bank rose $1.25, or 2.53 per cent, to $50.75, ANZ gained 45 cents, or 1.93 per cent, to $23.75, NAB added 60 cents, or 2.06 per cent, to $29.69, and Westpac advanced 17 cents to $25.35.
On the Sydney Futures Exchange, the December share price index contract gained 66 points to 4667, on a volume of 13,490 contracts.
Gold eclipses $1,000Financials, retail push shares higher
